California to Protect Owners of Forgotten Cryptoassets
Date: 2025-10-14 Author: Gabriel Deangelo Categories: IN WORLD
California Governor Gavin Newsom signed SB 822, a bill that regulates the handling of unclaimed cryptoassets. According to the bill, digital currencies that have remained dormant for more than three years will not be automatically sold or converted to fiat currency. Instead, they will be preserved in their original form and placed under state control until the rightful owner claims their rights.
The new law extends existing unclaimed property laws to cryptocurrencies, including Bitcoin and Ethereum. Now, all such assets stored on custodial platforms will be transferred for safekeeping to special government entities that partner with licensed custodians. These organizations are required to maintain high security standards and ensure the secure storage of digital assets.
The bill's author, Senator Josh Becker, noted that SB 822 eliminates the legal uncertainty surrounding digital assets and officially equates them with intangible property. He stated that the law helps the state adapt to the new realities of the digital economy, where cryptocurrency is becoming a fully-fledged part of the financial system.
According to the law, asset sales are permitted only in exceptional cases—if no owner emerges within 18-20 months of notification of the transfer of ownership. Furthermore, the sale is possible only after an official report from the State Comptroller, making the process completely transparent.
Coinbase General Counsel Paul Grewal supported the initiative, stating that this step strengthens the protection of crypto investors' rights. He emphasized that the new law prevents the forced liquidation of digital assets without the owner's consent and is consistent with regulatory standards already in place in most American states.
The passage of SB 822 marked an important milestone in the development of California's legal framework for digital finance. The law will take effect in the coming months, becoming the first initiative of its kind in any US state aimed at protecting users of cryptocurrency platforms and their assets.
Experts note that this new law strengthens trust in digital assets and could serve as a model for further regulation of the crypto market at the federal level. California thus reaffirms its status as a leader in technological reform and the implementation of progressive financial regulations.
